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Head Note

Constitution of India, 1950  - Article 14

LPG Distributorship - Termination of Distributorship - Alleged violation of conditions of standards agreement - Respondent no.2 is far weaker in economic strength and has no bargaining power with IOCL - At the time when the letter of allotment was issued, respondent no.2 had no other means of livelihood and was dependent on the grant of Indane Gas agency by IOCL for sustenance of himself and family members - The letter of allotment contains standard terms and respondent nos. 2 and 3 had no opportunity to vary the same - Condition no.8 of letter of allotment provides for unilateral termination of distributorship without assigning any reason which is liable to be read down in the light of Article 14 of Constitution - IOCL being a Government of India Undertaking is bound to act fairly, reasonably and its conduct is subject to scrutiny on the touchstone of Article 14 of the Constitution of India.

Indian Contract Act, 1872  - Section 7

LPG Distributorship -- Termination of - Alleged violation of conditions of standards agreement - Standard agreement was never supplied to both the respondent nos. 2 and 3 - Said standard agreement cannot be said to be executed between the allottees and IOCL - Said standard agreement in question cannot be said to be a concluded contract between the parties in law - Consequently, it cannot be made binding upon the allottees of distributorship by IOCL.

The Specific Relief Act, 1963  - Section 14 (1)

LPG Distributorship - Termination of Distributorship - Specific performance - Suit maintainability - Findings by the High Court that from the terms of agreement, namely, the letter of allotment and the conduct of the parties, it appears that neither the contract was revocable nor it had become void for any reason whatsoever hence, provision of Section 14(1)(c) of the Specific Relief Act is not applicable to the facts and circumstances of the case and the suit cannot be legally held to be maintainable under the said provision upheld.

Topic(s)-LPG Distributorship - Termination set aside